At the end of 2016 the following information is available for Jackson and Fargo companies: Jackson Fargo Sales$1,000,000 $1,000,000 Cost of goods sold 700,000  600,000 Operating expenses 250,000  300,000 Total assets 1,200,000  1,200,000 Stockholders’ equity 360,000  360,000

At the end of 2016 the following information is available for Jackson and Fargo companies:

	Jackson			Fargo
Sales	$	1,000,000		$	1,000,000
Cost of goods sold		700,000			700,000
Operating expenses		250,000			300,000
Total assets		1,200,000			1,200,000
Stockholders’ equity		360,000			360,000

Required

a.	Prepare a common size income statement for each company. (Round percentage answers to 1 decimal place.)

b.	Compute the return on assets and return on equity for each company. (Round your answers to 2 decimal places.)

Answer rating: 100% (QA)

CommonSize Income Statement Commonsize income statement is a financial statement which shows ... View the full answer